Beyond Bulls & Bears - 24/41 - Perspective From Franklin Templeton Investments

Beyond Bulls & Bears

Multi-Asset

Student loan forgiveness plan and Inflation Reduction Act: Are these new policies inflationary or deflationary?

Inflation is top of mind for consumers and market participants. In the United States, many are questioning whether student loan forgiveness will make inflation worse, and if the recently passed “Inflation Reduction Act” will offer relief. Franklin Templeton Investment Solutions’ Gene Podkaminer and Spencer Walling weigh in on whether these new policies will worsen the current inflationary environment, or prove to provide a deflationary impulse for the economy.

Gene Podkaminer, CFA | September 23, 2022

Fixed Income

On my mind: Staying on message

The Fed delivered another 75 bps rate hike and reiterated its Jackson Hole message: reducing inflation is now its one and only priority. But the Fed's forecasts still seem too optimistic, and this could feed extended uncertainty and volatility in markets. Our Fixed Income CIO Sonal Desai shares her thoughts.

Sonal Desai, Ph.D. | September 21, 2022

Equity

Notes from the Trading Desk: Europe

Headwinds persist and volatility remains, and investors seem to be looking beyond the immediate issues that have been weighing on stocks, giving the market short-term, risk-on moves higher.

September 12, 2022

Equity

Euro fall: Why parity between the euro and US dollar may persist

Franklin Mutual Series’ Investment Strategist Katrina Dudley believes that higher inflation in Europe stemming from rising energy prices, as well as lower relative interest rates, may keep the euro under pressure.

Katrina S. Dudley, CFA | September 08, 2022

Fixed Income

Liz Truss to be new British prime minister

David Zahn, Franklin Templeton's Head of European Fixed Income, offers some initial thoughts on the market implications of the election of new UK Prime Minister Liz Truss.

David Zahn, CFA, FRM | September 07, 2022

Equity

Notes from the Trading Desk: Europe

The ECB will be a key focus on Thursday as it considers accelerating the pace of interest-rate hikes. The market is placing about a 70% probability on a 75-basis-point increase, which would be the ECB’s single biggest hike since its inception. Sticking with Europe the energy crisis will remain front and centre given the Nord Stream 1 shut down. Markets will also be watching German Industrial Production data, out on Wednesday.

September 05, 2022

Perspectives

Dimensions & Insights: Diverse and inclusive practices unlock opportunities

Diversity & Inclusion (D&I) practices unlock opportunities that might otherwise go unnoticed. Companies with greater ethnic and cultural diversity outperform in productivity and profitability and gain the ability to find and unlock innovations from anyone, anywhere. Our Chief Diversity Officer Regina Curry believes the debate is long over—the business case for D&I is proven and compelling.

Regina Curry | August 31, 2022

Equity

Notes from the Trading Desk – Europe

Last week was another tough one for European equities, and the euro traded through parity versus the US dollar for much of the week given the gloomy economic backdrop. In addition, we saw a late selloff on Friday following Powell’s Jackson Hole speech. It is worth noting that volumes remained low.

August 29, 2022

Fixed Income

On my mind: The Fed—do you hear me now?

Fed Chairman Powell delivered a forceful and unequivocal message today at Jackson Hole, pushing back against market expectations of an early pivot back to rate cuts. Restoring price stability will require tight monetary policy for some time, he said, and the Fed will not waver when the labor market starts feeling the pain. Markets have taken notice, but will test the Fed’s resolve again, making for a volatile adjustment process in asset prices. Our Fixed Income CIO Sonal Desai shares her thoughts:

Sonal Desai, Ph.D. | August 26, 2022

Equity

PODCAST: Investing in innovation–impacts of market volatility and shocks

Franklin Equity Group’s Renee Anderson and Matt Moberg cover investing in innovation during market volatility. We hear how business fundamentals and valuations look right now. Plus, from electric vehicles and renewable energy, to the metaverse, blockchain and more—a breakdown of which innovation themes have the most upside and challenges.

Matthew J. Moberg | August 26, 2022

Multi-Asset

Inflation hedges: Fact and fantasy

Equity markets have clearly taken notice of rising inflation—and not in a good way. Here, Gene Podkaminer and Chris Ratkovsky of Franklin Templeton Investment Solutions explore how different investments have performed during various inflation scenarios, which strategies or asset classes might provide an inflation hedge, and whether a “soft landing” economic scenario is possible.

Gene Podkaminer, CFA | August 22, 2022

Equity

Notes from the Trading Desk – Europe

Energy prices continue to be a focus for the markets. European gas prices have edged back towards their year-to-date highs. In addition, relatively low water levels in the Rhine are not helping sentiment and could continue to dampen German economic growth.

August 22, 2022

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